Mobile Marketing Strategy

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Presentation on mobile marketing strategies to Cincinnati AMA 03/29/2011

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Mobile Marketing Strategy

  1. 1. Mobile Marketing Strategies Cincinnati Chapter of the AMA Cincinnati Chapter of the AMA March 29, 2011 March 29, 2011© 2011 ServiceWeb Systems, All rights reserved.
  2. 2. Mobile is now the primary tool for accessing the web• Mobile provides access to social circles at all times. The median number of text messages sent by 18-24 year olds is 125 per day. 72% of young adults use social media.• Mobile devices are constantly connected and provide immediate access to the web, to text messaging and entertainment. 85% of adults over 18 now own an internet connected cell phone.• Smartphones provide information, entertainment, music & photos. 33% of adults use their cell phone to access news and online media.• Social media is crossing generational boundaries. 42% of internet users ages 50 and older use social networking sites as of May 2010, up from 22% in April 2009. The fastest growing demographic on Facebook is seniors 70+. Source: Pew Internet and American Life Foundation © 2011 ServiceWeb Systems, All rights reserved.
  3. 3. How fast is the mobile app marketplace growing? “According to Borrell Associates statistics, more than half a million apps are downloaded every hour and the average smartphone user has 22 of them.” Report: Top 10 App Trends of 2011, Read Write Mobile, December 28, 2010 The average smartphone users spends 2.8 hours per day using apps and 3 in 5 people first turn to an app before searching the Web, says Mobclix. 2010 App Game Changers, Mobclix, December 20, 2010 “Consumers in the United States are more likely to buy a smartphone in 2011 than PCs, feature phones, eReaders, media tablets and gaming products, according to a recent survey by Gartner Inc. U.S. smartphone sales are expected to grow from 67 million units in 2010 to 95 million units in 2011. By comparison, mobile PC shipments are forecast to total 50.9 million in the U.S. in 2011, up from 45.6 Americans more likely to buy smartphone than any other device: Gartner, Mobile Commerce Daily, February 23, 2011 © 2011 ServiceWeb Systems, All rights reserved.
  4. 4. Businesses of every size are targeting customers withsmartphones as the primary communications medium © 2011 ServiceWeb Systems, All rights reserved.
  5. 5. Mobile is the primary vehicle for reaching consumers throughsocial media Every social media site is now accessible through mobile apps. © 2011 ServiceWeb Systems, All rights reserved.
  6. 6. News from the front… the platform wars Apple iPhone/iPad Android Blackberry - Apple sole manufacturer - Licensed to 27 manufacturers - RIM sole manufacturer - 300K+ apps, 9000 developers - 100K+ apps - 10K+ apps - One app store / common hardware - Multiple app stores - Multiple app stores - Tight control over distribution - Numerous hardware variants - Multiple hardware variants - Native programming language: - Registered app - Registered app Objective C / Cocoa - Native programming language: - Native programming language: - Safari browser Java / Android API / SDK Java / Blackberry API / SDK - Tablet computer: iPad - Multiple browsers - RIM browsers - iAd Mobile advertising - Multiple tablet computers - AdMob Mobile advertising - Network: ATT cellular, wireless, - AdMob Mobile advertising - Network: many Verizon (2011) - Network: many © 2011 ServiceWeb Systems, All rights reserved.
  7. 7. What are some of the solutions available to reach mobile customers? Option Objective Action CostBar code Use 2D bar codes to print media  Print media can include QR codes scanning $ and promotions to the firm’s  to link to web promotions, offers  web site and general informationText / multimedia Send SMS messages to customers  Send SMS messages to trigger a messaging to trigger customer response customer responseCreate mobile Make web site easily navigable by  Leverage mobile frameworks to friendly website smartphone users present web data on mobile  devicesUse mobile device Target customers on mobile  Provide mobile web access and advertising devices track web trafficCreate a custom app Provide enhanced capabilities to  Develop custom app and to engage customers lock in customers (loyalty card,  integrate into business processes payments)Use proximity Drive in‐store sales Develop kiosk solutions and marketing integrate with promotions $$$ © 2011 ServiceWeb Systems, All rights reserved.
  8. 8. Reaching your Audience via 2D bar codes Cost: No Incremental Cost Advantages • QR Codes can be used to integrate print media campaigns to your web site. • Customers download bar code scanner app to their smartphone and software will link to web site page or load data to phone. • Adding QR codes to a print campaigns has no incremental cost. QR code scanner can link to existing web page. • A steadily growing percentage of customers understand QR codes and have installed 2D bar code reader software installed in their smartphones. Disadvantages • QR Code use is relatively new to Cincinnati and a smaller proportion of i-nigma QR code reader customers know what QR codes are and how to use them • Some older smartphones have difficulty scanning QR Codes.http://www.i-nigma.com/Downloadi-nigmaReader.html • There are other formats for 2D barcodes such as Microsoft Tags or EZCodes that are proprietary and require the user to be connected to a website when reading the codes. © 2011 ServiceWeb Systems, All rights reserved.
  9. 9. Reaching your Audience via SMS Text Messaging Services Cost: $ 500-$1000/month + development costs Advantages • SMS and MMS capabilities are available on almost every mobile device. Most consumers, especially consumers 18 - 34, are very familiar with using text message services. • SMS programs are simple to implement and are cost effective. Because the requests are user initiated, response rates are on average about 12% vs. < 2% for other web based advertising. • Multimedia Message Services (MMS) is the mechanism to send images, video and audio to a user using extensions to the SMS messaging protocol. Disadvantages • SMS Spam is becoming more common. Uses response rates are decliningCommon Short Code (CSC) is a five or six digit as a consequence.number to which a user can send a text message.Common short codes are obtained by registering at • To be effective, SMS campaigns must be coordinated with campaigns thatthe Common Short Code Administration website use alternate marketing channels.below. The cost is $500/month for a randomlyassigned number or $1000 per month for a specificnumeric code.http://www.usshortcodes.com/index.html © 2011 ServiceWeb Systems, All rights reserved.
  10. 10. Reaching your Audience via Mobile Web Applications Development Cost: $3K and up Advantages • Web client based solution. App distribution from server. • Server can detect mobile device type and map screen data to mobile device view. • Frameworks make it possible to emulate native code handling of gestures and touch behaviors. • Can be programmed to recognize any smartphone or tablet device. • Best option to launch a mobile app based solution. Can test different solutions at lower cost / risk than native app development. • Can run Flash vide and Actionscript via Flash plug-in in the browser. Disadvantages • Mobile web access does not provide the same level of custmer engagement as native apps. • Navigation to mobile web app is a multi-step process that is more complicated than clicking on an icon. • Smartphone users are less tolerant of websites that do not emulate native mode behavior. © 2011 ServiceWeb Systems, All rights reserved.
  11. 11. Reaching your Audience via Custom Smartphone Apps Cost: $20K and up Advantages • Resident on the phone. Generates a higher level of engagement with the customer. • Accessed from the smartphone main menu. Icon is always visible. • The application guides the user’s interaction with the business. • Apps typically provide greater value to the end user and can be used to perform more complex interactions with the business (e.g. banking transactions). Disadvantages • Organization must develop and maintain the application. • Applications requirement ongoing maintenance and support, and will need to be updated as user needs change. • The software development, distribution and management process is much more complex than traditional web development. • Skilled app development resources are very scarce, demand is very high and development costs are rising quickly. © 2011 ServiceWeb Systems, All rights reserved.
  12. 12. What is the difference between a Mobile Web App and a CustomSmartphone App? © 2011 ServiceWeb Systems, All rights reserved.
  13. 13. Usage statistics for mobile apps Issues • User behavior when using smartphones is different than the behavior than when using workstations or laptops. Users average 20+ apps on their cell phone and there is a high turnover rate in resident apps. • Native apps must be programmed to capture and report app usage of routines. Visibility into customer behavior is not as simple as capturing page views via Google. • Usage data must be understood in the context of the functionality provided by the routines within native apps. • Native app usage counts need to be reconciled with the server side statistics to understand whether the application is being used as expected by the users. The goal is to understand what is not working rather than what is working. • Native app analytics are in their infancy. Information that is captured through resident apps include: sessions, session length, new users, device types and locations where the app was used. • The most important statistics for native apps include: social media referrals, downloads, uninstalls, abandoned transactions, and counts of specific actions performed via the app. This information is distributed across multiple sources and need to be aggregated at the server to get a clear picture of how the apps are being used. • Mobile app statistics providers: Flurry, AdMob, Webtrends © 2011 ServiceWeb Systems, All rights reserved.
  14. 14. Reaching your Audience via Mobile Banner Ads Apple’s iAd and Google’s AdMob programs allows mobile ads to be sent to smartphones if the user opts in. Push notifications set an alert notification in the home menu and the messages will be displayed within the target application. © 2011 ServiceWeb Systems, All rights reserved.
  15. 15. Emerging Solutions for Mobile Devices… Mobile Proximity Marketing Marketing Solutions Based on Short Range Connection Strategies,.. Bluetooth, Bump, SMS, Audible, QR Codes • Proximity Marketing is used for point-of-purchase, kiosk and special event marketing. • Marketing strategies include walk-by “talking” shelf tags, in store SMS, 1D/2D bar code scanning, “bump” message exchange, subsonic phone communications • Next phone generation will include GPS receivers that will resolve location down to 3 – 5 feet • Proximity marketing is ideal method for at public events • Proximity marketing has moved from bleeding edge concept to deployment over last 6 months Proximity marketing leverages the communications and geolocation capabilities of smartphones to direct targeted marketing at mobile users within a limited geographic area. © 2011 ServiceWeb Systems, All rights reserved.
  16. 16. Emerging Solutions on Mobile Devices… Gaming, Lifestyle and Affinity Marketing Gaming, Lifestyle and Affinity apps are emerging tools for engaging prospective customers • Games such as Angry Birds and Mafia Wars create a new level of engagement. • Gaming and social media have successfully pulled 18- 24 demographic away from prime time television to engagement via smartphones and tablets. • Gaming and lifestyle strategies create multiple new categories for revenue generation… embedded advertising, virtual goods, paid cheats, character merchandising, product tie-ins, and lots more. • Lifestyle marketing strategies with these kinds of innovative channels achieve incredibly high response rates. ROVIO “Angry Birds” App Design and Monetization Strategyhttp://www.youtube.com/watch?v=DpLRQy5cNIc&feature=&p=ECE328605D4296AE&index=0&playnext=1 © 2011 ServiceWeb Systems, All rights reserved.
  17. 17. Takeaways…  Mobile marketing has become mainstream and is affordable for most businesses  Mobile marketing tends to be more “sticky” with consumers because it can provides a more highly valued solution  Mobile marketing is inherently measurable and has very high response rates  Mobile provides “always on” access to web sites, social media, entertainment and information  Mobile levels the playing field… it can provide much deeper insight into customer behavior than print media or traditional websites  Mobile solutions deliver the kind of immediate personal engagement that customers now demand. © 2011 ServiceWeb Systems, All rights reserved.
  18. 18. Bob McCarthy Biography Bob McCarthy is the President and CEO of ServiceWeb Systems, Inc. a software development and services company based in Cincinnati, Ohio. ServiceWeb Systems is a mobile device and web development services company based in Cincinnati, Ohio. SWSI uses onshore and offshore resources to deliver custom smartphone and tablet apps quickly and cost effectively. Visit the SWSI website for videos and screen shots of previous projects or scan the QR code below for contact information and links to our website. http://www.servicewebsw.com http://www.twitter.com/servicewebsw18 © 2011 ServiceWeb Systems, All rights reserved.
  19. 19. Thank you…Bob McCarthybob.mccarthy@servicewebsw.com513-527-4886 © 2011 ServiceWeb Systems, All rights reserved.

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